Crude prices slip on expectations of high OPEC output

01-Jun-15

Crude oil prices have fallen at the start of the week- Brent crude futures slipped to US$65 per barrel, while US crude futures fell to US$59.7 a barrel. Prices have fallen on expectations that OPEC output would remain high after rising in May, stoking worries of oversupply despite declining US rig operations, as per Reuters. Monday saw near-record production in most oil-producing regions, especially the Middle East. Oil output by the Organisation of the Petroleum Exporting Countries (OPEC) has possibly peaked to a two-and-a-half year high of 31.22 mln bpd in May and production is not expected to be cut during a meeting of the group this Friday.